Morning Call 10/3

Barchart Morning Call

Barchart.com - Tue Oct 3, 6:40AM CDT

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.06%) this morning are up +0.08% at a fresh record nearest-futures high. European stocks slipped from a 4-month high and are down -0.09% as the markets consolidate following sharp gains over the past two sessions. GBP/USD fell to a 2-week low and is down -0.12% after the UK Sep Markit/CIPS construction PMI unexpectedly contracted at its weakest pace in 14-months. Asian stocks settled mostly higher: Japan +1.05%, Hong Kong +2.25%, China and South Korea closed for holidays, Taiwan +0.04%, Australia -0.49%, Singapore -0.49%, India +0.68%. Japan's Nikkei Stock Index rallied to a new 2-year high after strong U.S. manufacturing data Monday along with expectations for a U.S. tax cut bolstered optimism in global economic growth. Japanese stocks extended their gains on expectations for an increase in consumer spending after the Japan Sep consumer confidence index rose more than expected and matched a 4-year high. India's Sensex Stock Index rallied +0.68%, led by a +3.6% surge in Tata Motors, after the company won a government contract for 10,000 electric cars.

The dollar index (DXY00 -0.33%) is down -0.02%. EUR/USD (^EURUSD) is up +0.22% as it rebounded from a 1-1/2 month low in overnight trade after Eurozone Aug PPI rose at a stronger-than-expected +0.3% m/m pace, the most in 7-months, which bolsters the outlook for the ECB to taper its bond purchases. USD/JPY (^USDJPY) is up +0.19%.

Dec 10-year T-note prices (ZNZ17 -0.02%) are down -4 ticks.

The UK Sep Markit/CIPS construction PMI unexpectedly fell -3.0 to 48.1, weaker than expectations of no change at 51.1 and the steepest pace of contraction in 14-months.

Eurozone Aug PPI rose +0.3% m/m and +2.5% y/y, stronger than expectations of +0.1% m/m and +2.3% y/y with the +0.3% m/m gain the largest monthly increase in 7-months.

The Japan Sep consumer confidence index rose +0.6 to 43.9, stronger than expectations of +0.2 to 43.5 and matched its 4-year high from Mar 2017.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Fed Governor Jerome Powell discusses regulatory reform at a U.S. Financial Regulation event in Washington, (2) Sep total vehicle sales (expected 17.00 million, Aug 16.03 million).

Notable Russell 1000 earnings reports today include: Lennar (consensus $1.01), Paychex (0.60).

U.S. IPO's scheduled to price today: none.

Equity conferences this week: Deutsche Bank U.S. Leveraged Finance Conference on Mon-Wed, European Utility Week Conference on Tue, Global Gaming Conference - Panel on Tue, Helitech International Conference on Tue, NetApp Insight Investor Summit on Tue, Japan Pack Trade Show on Tue, Linley Processor Conference on Wed, Petaluma Area Chamber of Commerce Business Conference on Fri.

OVERNIGHT U.S. STOCK MOVERS

Phillips 66 (PSX +0.84%) was upgraded to 'Buy' from 'Neutral' at Goldman Sachs with a price target of $109.

Cal-Maine Foods (CALM +1.34%) was upgraded to 'Overweight' from 'Equal Weight' at Stephens with a price target of $50.

MGM Resorts International (MGM -5.58%) was downgraded to 'Neutral' from 'Positive' at Susquehanna Financial.

Craft Brew Alliance (BREW +1.42%) was rated a new 'Positive' at Susquehanna Financial with a price target of $22.

Herbalife (HLF -0.28%) said it sees Q3 adjusted EPS of 80 cents-90 cents, better than consensus of 65 cents-85 cents.

Tesla (TSLA +0.13%) slid over 1% in after-hours trading after it reported production of its Model 3 at only 260 units, below expectations of 1,500 units.

CenturyLink (CTL +2.22%) gained almost 1% in after-hours trading after it the Department of Justice cleared CenturyLink's acquisition of Level 3.

Tile Shop Holdings (TTS +3.94%) plunged 20% in after-hours trading after it reported Q3 preliminary net sales of $84 million, below consensus of $87.1 million, and it said its July 18 expectations for full-year 2017 "are no longer applicable."

Insys Therapeutics (INSY +12.05%) rose over 2% in after-hour trading on technical buying after it closed above its 50-day moving average Monday for the first time since July.

Callon Petroleum (CPE +1.51%) lost nearly 3% in after-hours trading after it cut its Q3 crude production forecast to 22,450 bpd to 22,600 bpd from an earlier forecast of 23,000 bpd-25,000 bpd due to Hurricane Harvey.

Endocyte (ECYT +157.45%) jumped 17% in after-hours trading, on top of Monday's +157% surge, after it announced an exclusive world-wide license of Phase 3 ready PSMA-Targeted radioligand therapeutic therapy for development to treat prostate cancer.

MARKET COMMENTS

Dec S&P 500 E-mini stock futures (ESZ17 -0.06%) this morning are up +2.00 points (+0.08%) at a new record nearest-futures high. Monday's closes: S&P 500 +0.39%, Dow Jones +0.68%, Nasdaq +0.04%. The S&P 500 on Monday climbed to a new record high and closed higher on optimism about the global economic outlook after the China Sep manufacturing PMI unexpectedly rose +0.7 to 52.4, stronger than expectations of -0.1 to 51.6 and the fastest pace of expansion in 5-1/3 years. There was also optimism about the U.S. economic outlook after the U.S. Sep ISM manufacturing index unexpectedly rose +2.0 to 60.8, stronger than expectations of -0.7 to 58.1 and the fastest pace of expansion in 13-1/3 years.

Dec 10-year T-note prices (ZNZ17 -0.02%) this morning are down -4 ticks. Monday's closes: TYZ7 -2.00, FVZ7 -1.50. Dec 10-year T-notes on Monday fell to a fresh 2-1/2 month low and closed lower on the unexpected increase in the Sep ISM manufacturing index to a 13-1/3 year high and on reduced safe-haven demand with the rally in the S&P 500 to a new all-time high. T-notes recovered from their worst levels on dovish comments from Minneapolis Fed President Neel Kashkari who said the Fed should not raise rates again until core PCE inflation rises to 2%.

The dollar index (DXY00 -0.33%) this morning is down -0.022 (-0.02%). EUR/USD (^EURUSD) is up +0.0026 (+0.22%) and USD/JPY (^USDJPY) is up +0.21 (+0.19%). Monday's closes: Dollar Index +0.483 (+0.52%), EUR/USD -0.0081 (-0.69%), USD/JPY +0.26 (+0.23%). The dollar index on Monday closed higher on the unexpected increase in the U.S. Sep ISM manufacturing index to a 13-1/3 year high, which bolsters the case for additional Fed rate hikes. There was also weakness in EUR/USD due to civil unrest in Spain after Spanish police tried to stop a referendum in state of Catalonia to secede from Spain.

Nov crude oil (CLX17 +0.04%) this morning is down -5 cents (-0.10%) and Nov gasoline (RBX17 +0.06%) is -0.0010 (-0.06%). Monday's closes: Nov WTI crude -1.09 (-2.11%), Nov gasoline -0.0357 (-2.24%). Nov crude oil and gasoline on Monday closed sharply lower with Nov crude at a 1-week low and Nov gasoline at a 3-1/2 week low. Crude oil prices were undercut by a stronger dollar and by negative carry-over from Friday's Baker Hughes report that active U.S. oil rigs increased by 6 rigs in the week ended Sep 29 to 750 rigs, the first increase in 7 weeks.

Metals prices this morning are mostly lower with Dec gold (GCZ17 +0.12%) -2.1 (-0.16%) at a 1-3/4 month low, Dec silver (SIZ17 -0.20%) -0.029 (-0.17%) and Dec copper (HGZ17 +1.06%) unch. Monday's closes: Dec gold -3.9 (-0.30%), Dec silver -0.171 (-1.02%), Dec copper -0.026 (-0.87%). Metals on Monday closed lower with Dec gold at a 1-1/2 month low and Dec silver at a 1-3/4 month low. Metals prices were undercut by strength in U.S. manufacturing activity that boosted the dollar and increased the chances for a Fed rate hike after the Sep ISM climbed to a 13-1/3 year high.

GLOBAL EVENT CALENDAR10/03/2017

		Tuesday, Oct 3
US	0830 ET	Fed Governor Jerome Powell discusses regulatory reform at a U.S. Financial Regulation event in Washington.
	n/a	Sep total vehicle sales expected 17.10 million, Aug 16.03 million. Sep domestic vehicle sales expected 13.00 million, Aug 12.48 million.
		Wednesday, Oct 4
US	0700 ET	Weekly MBA mortgage applications, previous -0.5% with purchase sub-index +2.8% and refi sub-index +3.5%.
	0815 ET	Sep ADP employment change expected +143,000, Aug +237,000.
	0945 ET	Revised Sep Markit services PMI expected unchanged at 55.1, prelim-Sep -0.9 to 55.1. Revised Sep Markit composite PMI, prelim-Sep -0.7 to 54.6.
	1000 ET	Sep ISM non-manufacturing PMI expected +0.2 to 55.5, Aug +1.4 to 55.3.
	1030 ET	EIA weekly Petroleum Status Report.
	1515 ET	Fed Chair Janet Yellen delivers opening remarks at a community banking conference in St. Louis.

U.S. STOCK CALENDAR10/03/2017

Name	Ticker	Time	Description	Period	Estimate
Paychex Inc	PAYX US	Bef-mkt	Q1 2018 Earnings Release	Q1 18	0.604
Lennar Corp	LEN US	Bef-mkt	Q3 2017 Earnings Release	Q3 17	1.009
Sherwin-Williams Co/The	SHW US	08:00	Financial Community Meeting
Paychex Inc	PAYX US	09:30	Q1 2018 Earnings Call	Q1 18
Intuit Inc	INTU US	11:00	Investor Day
Lennar Corp	LEN US	11:00	Q3 2017 Earnings Call	Q3 17
Telephone & Data Systems Inc	TDS US		Roadshow - Day 2
United States Cellular Corp	USM US		Roadshow - Day 2
DR Horton Inc	DHI US		Extraordinary Shareholders Meeting

MORNING CALL 6/17

MORNING CALL

Friday, June 17th, 2016View Older Reports Everything you need to know about the markets in one free daily newsletter. E-mail:   You will also receive a free subscription to the Barchart family of newsletters. OVERNIGHT MARKETS AND NEWS Sep E-mini S&Ps are down -0.18% and European stocks are up +1.07% as Brexit concerns temporarily receded after campaigning over whether the UK should leave the European Union was suspended for a second day today after the murder of Labor lawmaker Jo Cox, an advocate for Britain to remain in the EU. A weaker dollar has also boosted commodity prices, which has strengthened energy and raw-material producing stocks. Asian stocks settled higher: Japan +1.07%, Hong Kong +0.66%, China +0.43%, Taiwan +0.87%, Australia +0.32%, Singapore +0.43%, South Korea +0.01%, India +0.38%. The dollar index is down -0.17%. EUR/USD is up +0.33%. USD/JPY is unchanged. Sep T-note prices are down -11 ticks. The BOE warns that if Britain votes next Thursday to leave the European Union, the damage could extend to global markets and the word economy. Central banks around the world are on high alert ahead of the vote with the leaders of the Fed, BOJ, BOC and SNB all citing the vote as being potentially disruptive. The BOE said a vote to leave could have "adverse spillovers to the global economy" through "financial market and confidence channels." U.S. STOCK PREVIEW Key U.S. news today includes: (1) May housing starts (expected -1.9% to 1.150 million, Apr +6.6% to 1.172 million) and May building permits (expected +1.3% to 1.145 million, Apr +4.9% to 1.130 million). None of the Russell 1000 companies report earnings today. U.S. IPO's scheduled to price today: none. Equity conferences today include: none. OVERNIGHT U.S. STOCK MOVERS Phillips 66 (PSX +0.37%) was downgraded to 'Equal Weight' from 'Overweight' at Morgan Stanley. Oracle (ORCL +0.52%) climbed over 2% in after-hours trading after it reported Q4 adjusted EPS of 81 cents, below consensus of 82 cents, but Q4 adjusted revenue of $10.6 billion was higher than consensus of $10.47 billion. Smith & Wesson (SWHC +1.26%) jumped nearly 7% in after-hours trading after it reported Q4 adjusted EPS of 66 cents, well above consensus of 54 cents, and then raised guidance on fiscal 2017 adjusted EPS to $1.83-$1.93, above consensus of $1.66. Parsley Energy (PE -2.77%) was rated a new 'Buy' at Wunderlich Securities with an 18-month price target of $32. Envision Healthcare Holdings (EVHC -6.18%) was downgraded to 'Market Perform' from 'Outperform' at Oppenheimer. Finisar (FNSR +0.80%) rallied over 8% in after-hours trading after it reported Q4 adjusted EPS of 29 cents, above consensus of 25 cents. MGM Resorts International (MGM -1.47%) rose over 4% in after-hours trading after guiding annual adjusted Ebitda benefit to $400 million by the end of 2017 from $300 million previously forecast. Revlon will buy Elizabeth Arden (RDEN -0.21%) for $14/ share cash if deal valued at $870 million. Lumber Liquidators (LL +0.68%) jumped over 10% in after-hours trading after agreed to not resume sales of laminate flooring previously imported from China and the U.S, Consumer Product Safety Commission said it will not order a product recall. ServiceNow (NOW -1.06%) was rated a new 'Market Perform' at Oppenheimer. Paypal Holdings (PYPL +0.35%) was rated a new 'Outperform' at Oppenheimer with a price target of $43. Synergy Resources Corp. (SYRG -4.24%) was rated a 'Strong Buy' at Raymond James with a 12-month price target of $9.50. Stanley Furniture (STLY -1.56%) said it hired Stephens as financial adviser on a strategic review. MARKET COMMENTS September E-mini S&Ps this morning are down -3.75 points (-0.18%). Thursday's closes: S&P 500 +0.31%, Dow Jones +0.53%, Nasdaq +0.21%. The S&P 500 on Thursday rebounded from a 3-week low and closed higher on reduced Brexit concerns after the murder of a UK lawmaker fueled speculation that UK voters will vote to remain in the EU. Stocks were also boosted by stronger-than-expected U.S. economic data after the +6.5 point increase in the Jun Philadelphia Fed business outlook survey to 4.7 (stronger than expectations of +2.8 to 1.0) and the +2 point gain in the Jun NAHB housing market index to 60 (stronger than expectations of +1 to 59 and a 5-month high). Stocks were undercut by the slide in European stocks to a 4-month low on concern about a possible UK "Leave" vote next Thursday. Stocks were also undercut by the unexpected +13,000 increase in weekly initial unemployment claims. Sep 10-year T-note prices this morning are down -11 ticks. Thursday's closes: TYU6 +6.50, FVU6 +3.50. Sep T-notes on Thursday rallied to a new contract high and closed higher on increased safe-haven demand from a slide in global stocks and on carryover support from rallies in 10-year German bunds and Japanese 10-year JGBs to all-time highs. T-notes were also boosted by reduced inflation expectations as the 10-year T-note breakeven inflation rate fell to a 3-1/4 month low. The dollar index this morning is down -0.160 (-0.17%). EUR/USD is up +0.0037 (+0.33%). USD/JPY is unchanged. Thursday's closes: Dollar Index-0.318 (-0.33%), EUR/USD -0.0023 (-0.20%), USD/JPY -1.64 (-1.55%). The dollar index on Thursday climbed to a 1-1/2 week high but fell back and closed lower. The dollar was undercut by a recovery in GBP/USD from a 2-month low after the murder of a UK lawmaker fueled speculation that UK voters will vote to remain in the EU. The dollar was also undercut as USD/JPY plunged to a 1-3/4 year low after the BOJ refrained from expanding stimulus. The dollar found support on weakness in EUR/USD on Brexit fears and on stronger-than-expected U.S. economic data that included the Jun NAHB housing market index and the Jun Philadelphia Fed index. July WTI crude oil this morning is up +71 cents (+1.54%). July gasoline is up +0.0303 (+2.07%). Thursday's closes: CLN6 -1.85 (-3.85%), RBN6 -0.0329(-2.19%). July crude oil and gasoline prices on Thursday closed lower with July crude at a 1-month low and July gasoline at a 5-week low. Crude oil prices were undercut by concern about a possible UK Leave Brexit vote next week and the the fall in the S&P 500 to a 3-week low, which undercuts optimism about the economy and energy demand. GLOBAL EVENT CALENDAR06/17/2016 Friday, June 17, 2016 US 0830 ET May housing starts expected -1.9% to 1.150 million, Apr +6.6% to 1.172 million. May building permits expected +1.3% to 1.145 million, Apr +4.9% to 1.130 million. CHI 2130 ET China May property prices. Sunday, June 19, 2016 UK 1901 ET UK Jun Rightmove house prices, May +0.4% m/m and +7.8% y/y. JPN 1950 ET Japan May trade balance expected +26.5 billion yen, Apr +623.2 billion yen. May exports expected -10.0% y/y, Apr -10.1% y/y. May imports expected -13.7% y/y, Apr -23.3% y/y. Monday, June 20, 2016 JPN 0130 ET Japan May nationwide department store sales, Apr -3.8% y/y. GER 0200 ET German May PPI, Apr +0.1% m/m and -3.1% y/y. EUR 0500 ET Eurozone Apr construction output, Mar -0.9% m/m and -0.5% y/y US 1100 ET USDA weekly grain export inspections. 1300 ET Treasury auctions 2-year T-notes. 1600 ET USDA Weekly Crop Progress. U.S. STOCK CALENDAR06/17/2016 Company Ticker Time Event Description Period Estimate Centene Corp CNC 8:30 Investor Day Y 2016 Eli Lilly & Co LLY 9:00 Diabetes Commercial Update Call Cardinal Health Inc CAH 10:00 Investors and Analysts Meeting - Dublin Y 2016 Signet Jewelers Ltd SIG 10:00 Annual General Meeting Y 2016 Iron Mountain Inc IRM 10:00 Annual General Meeting Y 2016 Time Warner Inc TWX Annual General Meeting Cree Inc CREE ITC Scheduled to Announce Findings in Cree Inc. vs. Feit Electric Patent Case Fortinet Inc FTNT Annual General Meeting

BARCHART MORNING CALL 10/16

BARCHART MORNING CALL

Friday, October 16th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.19%) are down -0.19% as they fall back from a 1-3/4 month high posted in overnight trade. U.S. stock index futures retreated and the dollar and Treasuries rose after Turkey said it shot down an unidentified aircraft flying within its airspace on the Syrian border. European stocks are up +0.75% at a 5-week high on speculation that recent weaker-than-expected economic data will prompt global central banks to maintain or even expand stimulus measures. The markets will scrutinize today's U.S. Sep industrial production and Oct University of Michigan consumer sentiment data for clues as to the timing of any Fed interest rate increase. Asian stocks settled mostly higher: Japan +1.08%, Hong Kong +0.78%, China +1.60%, Taiwan +0.04%, Australia +0.73%, Singapore +0.51%, South Korea -0.21%, India +0.76%. China's Shanghai Composite climbed to a 1-3/4 month high on speculation the government will introduce additional measures to spur economic growth.

The dollar index (DXY00 +0.29%) is up +0.31%. EUR/USD (^EURUSD) is down -0.31%. USD/JPY (^USDJPY) is up +0.10%.

Dec T-note prices (ZNZ15 +0.10%) are up +3 ticks.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Sep industrial production (expected -0.3%, Aug -0.4%), (2) Aug JOLTS job openings (expected -173,000 to 5.580 million, Jul +430,000 to 5.753 million), and (3) preliminary-Oct U.S. consumer sentiment index from the University of Michigan (expected +1.8 to 89.0, Sep -4.7 to 87.2).

There are 8 of the S&P 500 companies report earnings today: GE (consensus $0.26), Honeywell (1.54), Comerica (0.70), Kansas City Southern (1.22), Progressive (0.48), SunTrust Banks (0.84), WW Grainger (3.06), M&T Bank (2.01).

U.S. IPO's scheduled to price today: none.

Equity conferences today include: none.

OVERNIGHT U.S. STOCK MOVERS

General Electric (GE +1.56%) fell over 1% in pre-market trading after it reported Q3 EPS of 28 cents, better than consensus of 26 cents, but sales of $27.9 billion were below consensus of $28.6 billion.

Allstate (ALL +2.89%) was downgraded to 'Underperform' from 'Market Perform' at William Blair.

Luluemon (LULU +1.90%) was upgraded to 'Outperform' from 'Neutral' at Credit Suisse.

Honeywell International (HON +0.24%) reported Q3 EPS of $1.60, above consensus of $1.54.

Comerica (CMA +2.79%) reported Q3 EPS of 73 cents, higher than consensus of 70 cents.

Occidental Petroleum (OXY +1.11%) rose over 1% in after-hours trading after Reuters reported that Occidental will sell its Bakken shale assets in North Dakota to Lime Rock for $500 million.

Mattel (MAT +0.04%) declined over 2% in after-hours trading after it reported Q3 EPS of 71 cents, less than consensus of 79 cents.

Wynn Resorts (WYNN +1.92%) dropped over 8% in after-hours trading after it reported Q3 adjusted EPS of 86 cents, better than consensus of 84 cents, but reported Q3 revenue of $996.3 million, below consensus of $1.03 billion. Other gaming stocks followed Wynn lower in after-hours trading with Las Vegas Sands (LVS +2.87%) and MGM Resorts international (MGM +1.93%) down over 3%.

Spirit Airlines (SAVE -0.20%) fell over 1% in after-hours trading after it projected capacity growth in 2016 t0ward the low end of a previous 20%-25%estimated range.

Yum! Brands (YUM +1.01%) rose over 3% in after-hours trading after it named Corvex Management founder Keith Meister, who has advocated selling off Yum's China business, to its board.

Schlumberger (SLB +1.53%) reported Q3 profit continuing operations of 78 cents, better than consensus of 77 cents, but said Q3 revenue was $8.47 billion, below consensus of $8.55 billion.

United Parcel Service (UPS +0.91%) said it will raise ground transportation rates by a net 4.9% effective Dec 28.

MARKET COMMENTS

Dec E-mini S&Ps (ESZ15 -0.19%) this morning are down -3.75 points (-0.19%). Thursday's closes: S&P 500 +1.49%, Dow Jones +1.28%, Nasdaq +1.64%. The S&P 500 on Thursday rallied to a 1-3/4 month high and closed sharply higher on carryover support from a +2.32% rally in China's Shanghai Composite and on the unexpected -7,000 decline in U.S. weekly initial unemployment claims to 255,000, better than expectations of +7,000 to 270,000 and matched the Jul 17 week low as the fewest claims since Nov 1973. Bank stocks were led higher by a +4.4% increase in Citigroup after it reported better-than-expected Q3 profits.

Dec 10-year T-notes (ZNZ15 +0.10%) this morning are up +3 ticks. Thursday's closes: TYZ5 -13.50, FVZ5 -9.50. Dec T-notes on Thursday closed lower on the unexpected decline in U.S. weekly jobless claims to a 42-year low, the larger-than-expected increase in U.S. Sep CPI ex food & energy to +1.9% y/y, and reduced safe-haven demand with the rally in the S&P 500 to a 1-3/4 month high.

The dollar index (DXY00 +0.29%) this morning is up +0.296 (+0.31%). EUR/USD (^EURUSD) is down -0.0035 (-0.31%). USD/JPY (^USDJPY) is up +0.12 (+0.10%). Thursday's closes: Dollar Index +0.440 (+0.47%), EUR/USD -0.0088 (-0.77%), USD/JPY +0.07 (+0.06%). The dollar index on Thursday rebounded from a 1-1/2 month low and closed higher on the larger-than-expected increase in U.S. core CPI, which may prompt the Fed to raise interest rates this year. In addition, there was weakness in EUR/USD, which retreated from a 1-1/2 month high and closed lower, after ECB Governing Council member Nowotny fueled speculation that the ECB may need to expand QE measures when he said both headline and core inflation in the Eurozone are "clearly missing our target."

Nov crude oil (CLX15 +0.75%) this morning is up +55 cents (+1.19%) and Nov gasoline (RBX15 +1.09%) is up +0.0170 (+1.30%). Thursday's closes: CLX5-0.26 (-0.56%), RBX5 +0.0123 (+0.94%). Nov crude oil and gasoline on Thursday settled mixed. Crude oil prices closed lower on the +7.56 million bbl surge in weekly EIA crude inventories and the +1.125 million bbl increase in crude supplies at Cushing, OK, delivery point of WTI futures. Crude oil and gasoline prices received some underlying support from the -0.8% decline in U.S. crude production to match a 10-month low of 9.096 million bpd and the -2.62 million bbl decline in weekly EIA gasoline supplies (vs expectations of -1.25 million bbl).

GLOBAL EVENT CALENDAR10/16/2015

US	0830 ET	USDA weekly Export Sales.
	0915 ET	Sep industrial production expected -0.3%, Aug -0.4%. Sep capacity utilization expected -0.3 to 77.3%, Aug -0.4 to 77.6%.
	1000 ET	Aug JOLTS job openings expected -173,000 to 5.580 million, Jul +430,000 to 5.753 million.
	1000 ET	Preliminary U.S. Oct University of Michigan consumer sentiment expected +1.8 to 89.0, Sep -4.7 to 87.2.
EUR	0200 ET	Eurozone Sep new car registrations, Aug +11.2% y/y.
	0500 ET	Revised Eurozone Sep CPI, previous -0.1% y/y. Revised Sep core CPI, previous +0.9% y/y.

U.S. STOCK CALENDAR10/16/2015

Company	Ticker	Time	Event Description	Period	Estimate
Honeywell International Inc	HON US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	1.544
Comerica Inc	CMA US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.697
Kansas City Southern	KSU US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	1.224
Progressive Corp/The	PGR US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.479
SunTrust Banks Inc	STI US	Bef-mkt	Q3 2015 Earnings Release	Q3 2015	0.836
General Electric Co	GE US	6:30	Q3 2015 Earnings Release	Q3 2015	0.262
WW Grainger Inc	GWW US	7:30	Q3 2015 Earnings Release	Q3 2015	3.057
WW Grainger Inc	GWW US	7:30	Q3 2015 Earnings Call	Q3 2015
Comerica Inc	CMA US	8:00	Q3 2015 Earnings Call	Q3 2015
General Electric Co	GE US	8:30	Q3 2015 Earnings Call	Q3 2015
Kansas City Southern	KSU US	8:45	Q3 2015 Earnings Call	Q3 2015
Schlumberger Ltd	SLB US	9:00	Q3 2015 Earnings Call	Q3 2015
SunTrust Banks Inc	STI US	9:00	Q3 2015 Earnings Call	Q3 2015
Honeywell International Inc	HON US	9:30	Q3 2015 Earnings Call	Q3 2015
Walt Disney Co/The	DIS US		U.S. Box Office Release of Movie Bridge of Spies""
Progressive Corp/The	PGR US		Q3 2015 Earnings Release - September Sales	Q3 2015	0.479
Netflix Inc	NFLX US		First Original Movie Beasts of No Nation" Becomes Available in Select Theatres"

BARCHART MORNING CALL 3/19

BARCHART MORNING CALL

Thursday, March 19th, 2015View Older Reports

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OVERNIGHT MARKETS AND NEWS

June E-mini S&Ps (ESM15 -0.06%) this morning are down -0.05% ahead of weekly U.S. jobless claims and the monthly Philadelphia Fed business outlook survey. European stocks are up +0.28% as they catch-up to yesterday's rally in U.S. equities after the Fed signaled it will proceed slowly when raising interest rates. Gains in European stocks were limited as Greece negotiates with its creditors to avoid default as its funding options dwindle. The yield on the Greek 10-year bond rose to a 1-1/2 year high of 11.51% after the ECB raised the maximum amount of emergency liquidity available to Greek lenders by 400 million euros, less than the 900 million euros requested by the Greek central bank. Greece faces more than 2 billion euros in debt payments on Friday, and government salaries and pensions must be paid at the end of this month. Meanwhile, the action by the FOMC on Wednesday to lower their estimate for U.S. interest rates sparked a rally in German bunds that sent the 10-year bund yield down to an all-time low of 0.170%. Asian stocks closed mixed: Japan -0.35%, Hong Kong +1.45%, China -0.16%, Taiwan +0.86%, Australia +1.86%, Singapore +0.73%, South Korea +0.30%, India -0.53%. Japanese stocks retreated after the yen jumped to a 2-1/2 week high against the dollar on Wednesday, which undercut the earnings prospects for exporters. Commodity prices are mixed. Apr crude oil (CLJ15 -3.78%) is down -3.11%. Apr gasoline (RBJ15 -1.43%) is down -0.94%. Apr gold (GCJ15 +1.09%) is up +1.09% at a 2-1/2 week high after the Fed yesterday signaled a slow pace of tightening. May copper (HGK15 +2.86%) is up +2.49%. Agriculture prices are higher. The dollar index (DXY00 +0.20%) is up +0.18%. EUR/USD (^EURUSD) is down -1.58%. USD/JPY (^USDJPY) is up +0.41%. Jun T-note prices (ZNM15 -0.04%) are up +0.5 of a tick at a 1-1/4 month high.
The ECB raised the maximum amount of emergency liquidity available to Greek banks by 400 million euros ($435 million), less than the 900 million euros requested by the Greek central bank. Greek banks were cut off from regular ECB funding operations in Feb, forcing them onto Emergency Liquidity Assistance (ELA) from the Greek central bank. The 400 million euro increase from the ECB takes the ELA to near 70 billion euros.
Eurozone Q4 labor costs rose +1.1% y/y, a smaller increase than the upward revised +1.4% y/y increase in Q3 that was originally reported at +1.3% y/y.
The Japan Jan all-industry activity index rose +1.9% m/m, right on expectations and the largest increase in 3-3/4 years.
Japan Feb nationwide department store sales rose +1.1% y/y, the first increase in 11 months.

U.S. STOCK PREVIEW

Today’s initial unemployment claims report is expected to show a +4,000 increase to 293,000 and for continuing claims to show a -18,000 decline to 2.400 million. Today’s Feb leading indicators report is expected to show a +0.2% increase, thereby matching January’s increase of +0.2%. The Treasury today will sell $13 billion of 10-year TIPS. There are 4 of the Russell 1000 companies that report earnings today: NIKE (consensus $0.85), Lennar (0.45), Tech Data (2.03), Michaels Companies (0.74). Equity conferences during the remainder of this week include: Bank of America Merrill Lynch Global Industrials & EU Autos Conference on Tue-Thu, Alzheimer's and Parkinson's Diseases and Related Neurological Disorders (AD/PD) on Fri.

OVERNIGHT U.S. STOCK MOVERS

Tech Data (TECD +1.50%) reported Q4 non-GAAP EPS of $1.96, below consensus of $2.03.
Lennar (LEN +1.76%) reported Q1 EPS of 50 cents, above consensus of 45 cents.
Newmont Mining (NEM +3.39%) was upgraded to 'Overweight' from 'Neutral' at HSBC.
Integrated Core Strategies reported a 5.1% passive stake in Dynegy (DYN +3.07%) .
Aetna (AET +1.97%) was upgraded to 'Buy' from 'Neutral' at Sterne Agee.
Cintas (CTAS +1.06%) reported Q3 EPS of 85 cents, higher than consensus of 78 cents, and then raised guidance on fiscal 2015 EPS to $3.31-$3.34 from $3.20-$3.25, above consensus of $3.27.
Wynn Resorts (WYNN -1.33%) was initiated with a 'Buy' at Brean Capital with a price target of $174.
Las Vegas Sands (LVS +2.74%) was initiated with a 'Buy' at Brean Capital with a price target of $65.
MGM Resorts (MGM +3.59%) was initiated with a 'Buy' at Brean Capital with a price target of $27.
Williams-Sonoma (WSM -3.47%) reported Q4 EPS ex-items of $1.52, right on consensus, but then lowered guidance on fiscal 2015 EPS to $3.35-$3.45, well below consensus of $3.63.
Guess (GES -2.45%) jumped 10% in after-hours trading after it reported Q4 EPS of 63 cents, above consensus of 57 cents.
Jabil Circuit (JBL +0.04%) reported Q2 core EPS of 50 cents, stronger than consensus of 45 cents.
Cerner (CERN +0.39%) was upgraded to 'Outperform' from 'Neutral' at RW Baird.
Smart & Final Stores (SFS +0.06%) raised guidance on fiscal 2015 adjusted EPS to 67 cents-70 cents, above consensus of 63 cents.
Herman Miller (MLHR +0.45%) reported Q3 adjusted EPS of 37 cents, higher than consensus of 34 cents.

MARKET COMMENTS

Jun E-mini S&Ps (ESM15 -0.06%) this morning are down -1.00 point (-0.05%). The S&P 500 index on Wednesday shook off early losses and rallied to a 2-week high and closed higher: S&P 500 +1.22%, Dow Jones +1.27%, Nasdaq +1.07%. The main bullish factor was speculation the Fed will be slow to raise rates when it said economic growth “moderated somewhat” and reduced its 2015 year-end federal funds rate median forecast to 0.625% from Dec’s 1.125%.
Jun 10-year T-notes (ZNM15 -0.04%) this morning are up +0.5 of a tick at a new 1-1/4 month high. Jun 10-year T-note futures prices on Wednesday rose to a 1-1/4 month high and closed higher. Closes: TYM5 +1-2/32 points, FVM5 +23.50. Bullish factors included (1) the FOMC’s cut in its U.S, GDP and PCE inflation estimates following the conclusion of its 2-day policy meeting, and (2) the FOMC’s cut in its 2015 year-end federal funds rate median estimate to 0.625% from Dec’s 1.125%, which signals a slower pace of tightening than previously expected.
The dollar index (DXY00 +0.20%) this morning is up +0.178 (+0.18%). EUR/USD (^EURUSD) is down -0.0172 (-1.58%). USD/JPY (^USDJPY) is up +0.49 (+0.41%). The dollar index on Wednesday fell to a 1-week low and closed lower: Dollar index -1.035 (-1.04%), EUR/USD +0.02655 (+2.51%), USD/JPY -1.259 (-1.04%). Bearish factors included (1) the FOMC’s cut in its U.S. 2015 GDP estimate and its year-end fed funds forecast, and (2) the post-FOMC statement saying that the Fed won’t begin to raise interest rates until it is confident that inflation will move back toward its 2.0% target and the labor market improves further.
Apr WTI crude oil (CLJ15 -3.78%) this morning is down -$1.39 a barrel (-3.11%) and Apr gasoline (RBJ15 -1.43%) is down -0.0169 (-0.94%). Apr crude oil and gasoline prices on Wednesday closed higher: CLJ5 +1.20 (+2.76), RBJ5 +0.0765 (+4.42%). Apr crude recovered from a 6-year low and both crude and gasoline closed higher on bullish factors that included (1) the slide in the dollar index to a 1-week low, and (2) the -4.47 million bbl decline in EIA gasoline inventories, a bigger drop than expectations of -900,000 bbl. Crude prices posted a 6-year low after EIA crude stockpiles jumped +9.62 million bbl to a record 458.5 million bbl (data from 1982), much more than expectations for a +4.4 million bbl build.

GLOBAL EVENT CALENDAR03/19/2015

US	0830 ET	Weekly initial unemployment claims expected +4,000 to 293,000, previous -36,000 to 289,000. Weekly continuing claims expected -18,000 to 2.400 million, previous -5,000 to 2.418 million.
	0830 ET	Q4 current account balance expected -$104.1 billion, Q3 -$100.3 billion.
	0830 ET	USDA weekly Export Sales.
	1000 ET	Mar Philadelphia Fed business outlook survey expected +1.8 to 7.0, Feb -1.1 to 5.2.
	1000 ET	Feb leading indicators expected +0.2%, Jan +0.2%.
	1100 ET	Treasury announces amount of 2-year T-notes (previous $26 billion), 2-year floating rate notes (previous $13 billion), 5-year T-notes (previous $35 billion) and 7-year T-notes (previous $29 billion) to be auctioned Mar 25-26.
	1300 ET	Treasury auctions $13 billion 10-year TIPS.
JPN	0030 ET	Japan Jan all-industry activity index expected +1.9% m/m, Dec -0.3% m/m.
EUR	0600 ET	Eurozone Q4 labor costs, Q3 +1.3%y/y.

U.S. STOCK CALENDAR03/19/2015

Company	Ticker	Time	Event Description	Period	Estimate
Lennar Corp	LEN US	Bef-mkt	Q1 2015 Earnings Release	Q1 2015	0.45
Tech Data Corp	TECD US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	2.033
Michaels Cos Inc/The	MIK US	Bef-mkt	Q4 2015 Earnings Release	Q4 2015	0.743
Mallinckrodt PLC	MNK US	5:30	Annual General Meeting	Y 2015
Tech Data Corp	TECD US	9:00	Q4 2015 Earnings Call	Q4 2015
Michaels Cos Inc/The	MIK US	9:00	Q4 2015 Earnings Call	Q4 2015
Lennar Corp	LEN US	11:00	Q1 2015 Earnings Call	Q1 2015
Keysight Technologies Inc	KEYS US	11:00	Annual General Meeting
Two Harbors Investment Corp	TWO US	13:15	Analyst & Investor Day	Y 2015
NIKE Inc	NKE US	16:15	Q3 2015 Earnings Release	Q3 2015	0.845
NIKE Inc	NKE US	17:00	Q3 2015 Earnings Call	Q3 2015
Platform Specialty Products Corp	PAH US		Investor and Analyst Day	Y 2015